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Please provide an answer and show your work. Thank you! Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for
Please provide an answer and show your work. Thank you!
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data. $ 24,507 18,393 42,900 BUSINESS SOLUTIONS Income Statement For Three Months Ended March 31, 2020 Computer services revenue Net sales Total revenue Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Repairs expense-Computer Total expenses Net income $14,452 330 1,190 2,650 465 1,775 1,235 570 280 930 23,877 $ 19,023 Dec. 31, 2019 $57,672 5,068 2,095 BUSINESS SOLUTIONS Comparative Balance Sheets December 31, 2019, and March 31, 2020 Mar. 31, 2020 Assets Cash $ 77,037 Accounts receivable 23,867 Inventory 624 Computer supplies Prepaid insurance 1,040 Prepaid rent 745 Total current assets 105,408 Office equipment 8,000 Accumulated depreciation-office equipment (660) Computer equipment 19,600 Accumulated depreciation-Computer equipment (2,380) Total assets $129,968 Liabilities and Equity Accounts payable $ Wages payable 885 Unearned computer service revenue 0 Total current liabilities 885 540 1,585 745 65,610 8,000 (330) 19,600 (1,190) $91,690 $ 1,120 510 1,600 3,230 Equity Common stock Retained earnings Total liabilities and equity 107,000 22,083 $ 129,968 81,000 7,460 $91,690 Required: Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2020. Owner Santana Rey contributed $26,000 to the business in exchange for additional stock in the first quarter of 2020 and has received $4,400 in cash dividends. (Amounts to be deducted should be indicated with a minus sign.) BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2020 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities $ 0 Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities 0 $ $ 0 Cash balance at December 31, 2019 Cash balance at March 31, 2020 $ 0
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